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Red China: New
gatekeeper of our canal
By Phyllis Schlafly
web
posted November 1, 1999
Jimmy Carter never would have been able to ram through his two treaties
giving away our Panama Canal if the Senate in 1978 could have looked into
the future and known that, when the U.S. Flag is lowered on December 31,
1999, Red China would become its gatekeeper. But that's what's scheduled
to happen unless Congress takes immediate action to prevent it.
Don't expect the Clinton Administration to interfere with China's stunning
beachhead in the Western Hemisphere. Clinton is hopelessly indebted to
the Chinese and their allies in Indonesia for financing his presidential
elections in 1992 and 1996.
China didn't need to send an invading army. Because of what is euphemistically
called "free trade," China has plenty of cash to buy and bribe
its way into our domain.
Communist China is the greatest national security threat to America today
and in the foreseeable future. At a major meeting in Beijing in 1994,
China designated the United States as its primary global rival.
China is rapidly building a modern war machine with 18 long-range and
140 intermediate and medium range missiles. It's based on espionage, theft,
trade deals that include technology transfers, and cash provided by a
$60 billion-a-year favorable balance of trade.
Every month, China collects up to $6 billion in U.S. cash by selling
its slave-labor products to Americans, but China buys only $1 billion
worth of U.S. goods. The Chinese pocket the $5 billion a month difference
and use it to build their military-industrial complex.
In order to cash in on the cash-rich Chinese, Panama manipulated the
bidding process, holding repeated rounds of bids, for leases for the U.S.-built
ports of Cristobal on the Atlantic end of the canal and Balboa on the
Pacific end. The 50-year leases were awarded to a Chinese Hong Kong corporation
named Hutchison Whampoa operating under the name Hutchison Port Holdings.
Hutchison Whampoa had come in only fourth in the bidding, after the Japanese
firm Kawasaki/I.T.S., the U.S. firm Bechtel, and the Panamanian American
company M.I.T. For exclusive control of the two ports, Hutchison Whampoa
agreed to pay $22.5 million a year plus what one Panamanan called "bucket
loads of money" under the table, and Panama's Law No. 5 was passed
on January 16, 1997 to confirm the deal.
Law No. 5 blatantly violates the Panama Canal Neutrality Treaty, Article
V, which stipulated that only Panama is allowed in defense sites. By giving
Hutchison "priority" for its business operations, Law No. 5,
Art. 2.11d, also violates the treaty's Article VI, which guaranteed "expedited"
and "head of line" passage for U.S. warships.
Art. 2.10c of Law No. 5 gives Hutchison Whampoa the "right"
to operate piloting services, tugs and work boats, which translates into
control of all the Canal's pilots. Art. 2.10e grants the "right"
to control the roads to strategic areas of the Canal, and Art. 2.12a grants
priority to all piers, including private piers.
Art. 2.8 gives Hutchison Whampoa the right to "transfer contract
rights" to any third party "registered" in Panama. Those
rights could be transferred to China, or even Iraq, Iran or Libya.
The Hutchison leases even violate Panama's own constitution, Art. 274,
which requires a plebiscite on Canal matters. None was held.
Law No. 5, Art. 2.1, also grants "first option" to Hutchison
Whampoa to take over the U.S. Rodman Naval Station, the Pacific port facility
capable of handling any warship. The Chinese will then have the power
to exclude U.S. warships while admitting Communist warships.
The billionaire chairman of Hutchison Whampoa, Li Ka-shing, was a business
and political buddy of the late Deng Xiaoping and now has the same close
relationship with both Jiang Zemin and the Riady financial empire of Indonesia.
No doubt that's why he controls most of China's commercial ports and seaborne
trade as well as most of the dock space in Hong Kong.
Li was China's chief agent in facilitating China's smooth takeover of
Hong Kong in 1997. Hutchison Whampoa partnered in several enterprises
with China Ocean Shipping Company (COSCO), which is directly controlled
by the People's Liberation Army, and served as a middleman in China's
deals with the U.S. firms Hughes and Loral.
The Carter-Torrijos Treaties, bad as they were, gave the United States
the right to defend the Panama Canal militarily. The Chinese leases, however,
will make it impossible to do this without directly confronting the Chinese
Communist regime.
In 1996, when China was "testing" missiles to scare Taiwan
before its election, the United States sent warships to the area and China
responded by impudently threatening to "rain down fire" on Los
Angeles from its China-based ICBM. Would Communist China do the same if
it bases its shorter-range missiles in Panama?
China will be able to ship its shorter-range missiles across the Pacific,
unload them at Balboa, and conceal them in warehouses until the time is
ripe. If Congress doesn't act immediately, we are heading for a Panama
Missile Crisis like the Cuban Missile Crisis of 1962.
Fighting the battle against the Panama giveaway treaties in 1978 helped
Ronald Reagan and a dozen Republican Senators to be elected in 1980. Saving
us from Red China as the Panama Canal gatekeeper could elect other Republicans
in 2000. Who will step up to the plate? 
Reprinted with the permission of The Eagle Forum.
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